UKRKONDPROM: Raising tariffs for cars Ukrzaliznytsia almost 4 Times over the past 5 MONTHS WILL EFFECT deadly UKRAINIAN EXPORT

Jul 12 2018 published c Uncategorized, earnings

Pictures on demand tariffs on carsIncreased rates of fees for using their own cars PJSC "UZ" almost quadrupled in the past 5 months 2018 Year inflict a powerful blow to Ukrainian exports.

This statement was made chairman of the Association "Ukrkondprom" Alexander Baldynyuk, UZ commenting on the decision about the next rate increase of 28 July 2018 year.

ABOUT. Baldynyuk reminded to change the procedures for determining charges for using their own cars with UZ 19 February 2018 year, which led to a sharp rise in prices. In particular, the cost of using the covered and insulated cars, necessary for the export of confectionery products, immediately tripled – from 213,6 USD to 684 USD per night. After raising of 28 July 2018 year rates will rise further 19,5% – before 817,2 USD per night.

Thus, only 5 months 2018 Carriage part, the cost of rail transport has almost 4 fold.

Marked, that 31 October 2017 UZ year have increased freight rates by indexation 15% coefficients of the collection of tariffs for railway transportation and related services.

Of concern approval of the Board of PJSC "Ukrzaliznytsya" such a sharp increase in rates of payment for use of cars UZ, without calculating the impact of logistics costs on exporters dynamics Ukrainian exports.

After raising their prices at a pace, as cost increases transport costs, Ukrainian producers are unable to, not to lose competitiveness in foreign markets.

Particular anxiety shippers are significantly raising rates for the transit backdrop of war with Russia, which blocked the transit of its territory for Ukrainian goods, transport and alternative route has led to an increase in logistics costs 40% for export of Ukrainian goods to Central Asia.

Instead of seeking opportunities to reduce the cost of transportation costs exporters, UZ consistently raises rates, holding Ukrainian exports.

For the words of. Baldinûka, exporters understand, UZ which is in a difficult financial position. But you need to solve this problem, first of all, by increasing the efficiency of the ultrasound, not just shift the responsibility for inefficient use of available resources to consumers, without improving the quality of these services.

Raising rates to the "UZ" justify the need to bring to market rates. But the growth rates of PJSC "UZ", contrary to claims management, led not to a "leveling of prices", but only to further price increases for private cars. Because the quality of rolling stock UZ inferior Wagon Owners.

This exporters confectionery deficient refrigerator car, without which it is impossible to export goods, requiring special temperature storage and transportation. It, despite the tariff increase, UZ in recent years not replenish its fleet cars of this type, and private owners of these cars there. That is to establish the market price for the use of cars of this type generally are not talking, because ultrasound establishes a fee for their use only on your own, while not improving the quality of their services.

Actually, financial condition is improving UZ not due to systemic reform and process optimization, but simply by extracting additional funds from other industries through tariff increases. In the short term it may show improved financial situation KM, but inevitably fall in exports will push freight rail. In the future it will adversely affect not only at UZ, but on the economy as a whole, because it will lead to lower production volumes, reduction of tax revenues to the budget, reduce foreign exchange earnings to the country.

so, an increase in tariffs for rail freight transportation has taken into account the calculation of the impact of such increases on macroeconomic indicators. Otherwise, for short-term improvement of the financial condition of ultrasound, can be removed export potential of Ukrainian economy.

As you know, from 28 July 2018 was put into effect new rates fee for using their own cars carrier JSC "UZ" and pay for the use of carrier wagons JSC "UZ" outside Ukraine.

Before, from 19 February 2018 year, UZ has raised these rates, Carriage resulting component tariff increase rail freight transportation, Depending on the type of car, about three times.

This with 31 October 2017 year fares “Ukrzaliznytsia” on trucking was increased by 15% According to the Ministry of Infrastructure 20 October 2017 year №357 “On Amending coefficients, applicable to the collection of tariffs for cargo transportation within Ukraine and related services”.

Association "Ukrkondprom" is the only industry association of producers of confectionery, food concentrates, starch products and coffee in Ukraine.

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